Government under pressure to resettle Nauru children in New Zealand

The Prime Minister is refusing to back a Labor proposal that would resettle children and families on Nauru, and end a two-year stand-off, after the Opposition offered a compromise deal to resettle them in New Zealand.

The proposal was put to the Prime Minister last night, but he is standing firm, insisting the government is "moving quietly" to resolve the situation.

As a number of coalition MPs, health professionals, and the crossbench, step up the pressure on the minority government, Labor shifted ground, agreeing to back legislation stuck in the Senate if the PM agrees to changes.

The government will only accept the New Zealand offer to take 150 asylum seekers and refugees a year, if they are banned from ever entering Australia closing, which it argues is a backdoor entry into the country.

Otherwise, it would send a signal to people smugglers that there is a way to reach Australia.

The government will only accept the New Zealand offer to take 150 asylum seekers and refugees a year, if they're banned from ever entering Australia, closing, it argues, a backdoor entry into the country. (AAP)

Labor says the legislation is an over-reach, and has proposed a compromise, approved by shadow cabinet, that would only ban those resettled in New Zealand, not other countries.

Visa arrangements between the two countries allow for open travel to Australia for Kiwi citizens.

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It came as Border Force officials revealed 11 children had been flown from Nauru to Australia on Monday night for urgent medical attention.

The Greens want all those still on Nauru immediately resettled here.

But Mr Morrison said while he wants to get children off the island, "you don't get to negotiate with people smugglers based on horse trading in the senate".

"You don't do it. Because you run the risk of creating a perverse incentive."

The Morrison Government is coming under increasing pressure to re-settle children and families on the island of Nauru. (AAP)

He said it risked putting more children on Nauru if the people smugglers kick-started their trade, and brought more families and minors.

"I understand the grief. I understand the great level of community passion and anxiety on this. I do," Mr Morrison said.

"But I also understand that I must take decisions that don’t put more children at risk, which is the great folly of the Labor Party."

He said he would take advice from Operation Sovereign Border officials about the potential impacts.

Shadow Minister Shayne Neumann who wrote to the government outlining the compromise, said the legislation would forever stop any asylum seekers, regardless where they’d been re-settled, from coming for business or tourist reasons.

Mr Neumann said the government could still be "strong on borders", but compassionate.

"Labor thinks we need to prioritise the health and welfare of the children and families in Nauru," he said.

"Independent, Andrew Wilkie, who has co-sponsored legislation to bring them directly to Australia, said he would accept the compromise with a heavy heart", and with conditions.

Deputy Labor leader, Tanya Plibersek, said it's "beyond time" Australia found a new home "for these vulnerable people".

Home Affairs Minister Peter Dutton told Question Time 150 asylum seekers had been removed from Manus Island and Nauru and the government "wants to get it down to zero" but had to be sensible about how it does it.

The minister said intelligence suggested people smugglers were ready to re-start operations.

"We are getting children off Manus. We have done that," Mr Dutton said.

"We are not doing it in any way that would see boats re-start."

Immigration Minister David Coleman said there were 635 still on Nauru, including 52 children.

Just on 450 had been re-settled in the United States including 17 this week.

Meanwhile 200 hundred minors had been sent to other countries for medical reasons.